In this post, let us go through the details / highlights of Pradhan Mantri Suraksha Bima Yojana (PMSBY Scheme).

PMSBY is Modi Government’s Personal Accident Insurance Scheme. All Indian Citizens are eligible for PM’s Suraksha Bima Yojana. Under this scheme, if the insured dies due to an accident, the nominee of the insured will get Rs 2 Lakhs as death benefit. If there is any total disability due to accident, the insured will get Rs 2 Lakhs, and for partial disability, the risk cover is limited to Rs 1 Lakh. This scheme will be linked to the Central Government’s another popular scheme ie., “Pradhan Mantri Jan Dhan Yojana”.

Features of Govt’s Pradhan Mantri Suraksha Bima Yojana :

Who is eligible to take PMSBY? This life insurance plan is available to people (all citizens) in the age group of 18 to 70 years and having a bank account.

When will this Scheme start / open? PM’s Suraksha Bima Yojana Scheme is now open for subscription for the insurance period 1st June 2015 to 31st May 2016. The last date to apply for this scheme for this insurance period is 31st May 2015 (Govt has now extended this deadline till 31st August 2015).

What is the Premium amount? You have to pay Rs.12 per year. It will be auto-debited form your bank account.

What is the Premium Payment Mode? The payment of premium will be directly auto-debited by the bank from the subscribers (policyholder’s) account.

What is the total Risk Coverage offered? For accidental death and full disability – the coverage amount is Rs.2 Lakh and for partial disability the risk coverage is Rs.1 Lakh.

What is the default Policy Term (duration)?The default policy term is one year (1st June to31st May). You need to renew the policy every year.

Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

Is Nomination facility available? Yes, nomination facility available. In-case of unfortunate event of death of the policyholder, the nominee will get the accidental death benefit.

What are the required documents? As per government, a copy of your Aadhar card alone is enough to subscribe to this scheme.

Who will implement this Scheme? Government’s Suraksha Bima scheme will be offered by Public Sector General Insurance Companies(Like – New India Assurance Company, National Insurance Company, The Oriental Insurance Company & United India Insurance co, through tie-ups with banks) and all other Private General Insurers who are willing to join the scheme and tie-up with banks for this purpose.

Will Government contribute to this scheme? Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.

An individual would be eligible to join the scheme through one savings bank account only.

How to Subscribe to Pradhan Mantri Suraksha Bima Yojna?

To avail this scheme’s benefit, you should have a Savings Bank Account. A simple application form for PMSBY Scheme has to be completed and submit it at all General Insurance Companies (Non-Life Insurers) or at participating Banks branches.Aadhar card is considered as the primary KYC document but it is not mandatory to have it.

You have to subscribe to this scheme every year in the month of June. You can also prefer to give a long-term option of continuing with the scheme, in which case your account will be auto-debited (towards premium amount) every year by your bank.

You may exit the scheme at any point and may re-join the scheme in future years by paying the annual premium, subject to conditions that may be laid down.

My Opinion on PMSBY Insurance Scheme:

Though the premium amount is same for all the individuals who are in the age group of 18-70 years, I believe that it is very cheap. You can surely consider subscribing to this scheme. (A Rs 2 Lakh Sum Assured Personal Accident Policy from any General Insurance Company may cost you around Rs 90 to Rs 110 p.a, for a 30 year old individual)

You can encourage your house-maid (or) car driver…also to subscribe to this scheme. Educate them about this scheme and if possible help them in opening a Bank account (under Jan Dhan Yojana).

I believe that this scheme will be beneficial for everyone, especially the underprivileged sections of Indian population. I hope that the Government publicizes this scheme very well.

Sreekanth Reddy

Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging, financial counseling & property consultancy for the last 6 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider.
The main aim of his blog is to "help investors take informed financial decisions."

You are really appreciable for these scheme that at least fulfilled our tiny dream under common people benefit . Please do something for lower middle class people like me who are neither getting any benefit nor became enough to face the financial crunch.